India - US Tariff and Relations | News + Updates
- Thread starter lightoftruth
- Start date
Vkdindian1
Registered Member
India doesn’t have the leverage and economic might to match Chinese in this regard.
Standing up and not caving in can be done but with a little care.
Musings
Administrator
Why pakistanis are celebrating as if someones put million dollars in their personal account is beyond me.
Why Indians are mourning as if its a close one just died is beyond me.
Calm down guys - Trump is flexing - Indians palpitations will stop soon.
Why Indians are mourning as if its a close one just died is beyond me.
Calm down guys - Trump is flexing - Indians palpitations will stop soon.
Dalit
Elite Member
This will push India to think very hard.
Musings
Administrator
50% is unsustainable and shocking.
Will bring thenm to the negotiating table immediately. Palpitations galore i can see
Dalit
Elite Member
I think that Trump will ease the tarrif pain once Modi accepts dictation. Modi will have to lose face in order to appease Trump. Although Modi is in defiant mood. I think we are going to witness serious damage here. India is going to agitate Trump further by getting closer to Russia and China. BRICS is about to get a boost. The issue with India is that it wants to remain part of Western projects and also remain relevant within Global South. That is a serious conundrum for India.
How Trump will deal with this is going to be very interesting. The pressure is severe for Modi. How will he react and resolve the current crisis?
India has turned this into Global South versus the West. Modi could have told the Russians that buying oil from them is not an option anymore. I am sure the Russians wouldn't make any fuss over this. This could have resolved the issue. Instead, Modi has opted for "sovereignty" and old friend Russia. A very bold, but costly move.
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Dalit
Elite Member
If India opts for Russia, China and BRICS, expect this and much more. We will see the true wrath of Trump.
It is becoming very obvious. Trump is giving Modi an ultimatum. Enough back and forth. Time to choose. The old guard in the US has a different approach. They are stuck in their India appeasement mode. Trump is very different. He doesn't appease or turn a blind eye. He protects US interests and won't hand out waivers.
When everyone was asleep, I was predicting this years ago. Even on legacy PDF. India was going to be confronted with picking a side. I just didn't know that Trump would be the one enforcing this.
PakFactor
Elite Member
How will Trump’s 50% tariffs on India impact its economy?
India’s economy could take a multibillion dollar hit after President Donald Trump raised tariffs on Indian goods to 50% — one of the highest levies on any trading partner — over objections to the South Asian country’s oil trade with Russia.
Trump had previously imposed tariffs of 25% on Indian goods due to the country’s high trade barriers.
While only around 20% of India’s goods exports — or 2% of GDP — are U.S.-bound, certain sectors are disproportionately exposed. UBS estimates $8 billion worth of exports are most vulnerable, including gems and jewellery, apparel, textiles, and chemicals.
The new tariffs are set to go into effect in 21 days, according to the order, while the previously announced tariffs are set to take effect on Thursday.
“There may be more symbolism than substance to the extra 25% tariff on imports from India,” said Brian Jacobsen, chief economist at Annex Wealth Management. “The duty does not into effect for 21 days. That’s quite a wide window to provide an offramp.”
Economists had forecast that the previously announced import duties were likely to have a “marginal downside” hit to India’s economic growth, owing to its diversified trade around the world.
However, some sectors of India’s economy are more exposed to trade with the U.S. than others.
“In terms of sectors impacted, we think gems and jewellery, apparel, textiles, and other chemicals are more exposed to the US tariffs and could see some targeted support measures from the government,” said UBS economists Tanvee Gupta Jain in a note to clients on August 5.
Investors in Indian equities, however, will remain partially insulated from the impact of tariffs.
The Nifty 50, the Indian benchmark index, for instance, “has about 9% direct exposure to the US, most of which is concentrated in IT Services”, according to Societe Generale equity strategists led by Rajat Agarwal.
IT services, however, are not targeted under the current duties on goods.
“The impact of tariffs for equities has fed through mainly via a weaker INR and higher currency volatility, which has weighed on foreign flows in the near term,” Agarwal added in a note to clients on August 6, ahead of the White House’s latest announcement.
Similarly, analysts point to India’s vast export of pharmaceuticals to the U.S., which are also likely to be shielded from tariffs.
India also exported steel and aluminium to the United States, but trade in those goods is taxed through a separate executive order.
Similarly, semiconductors and derived electronic products are also exempted from the reciprocal tariffs. Apple, which has large-scale manufacturing operations in India, is expected to be largely unaffected by the tariffs.
side-winder
Moderator
Now that we have also seen the official response from India - as expected it doesn't hint at any compromise. The question is how far can trump take his 'punitive measures' to - and how long can india stand its ground - before the 'purely business' calculations go into absolute 'negative'. However - the science of optics is also real and a major factor in decision making -- no matter the business calculations. So let's see -- Interesting times.
PakFactor
Elite Member
As I've said before, my post above yours, Trump's actions are just symbolic of getting some deal done after his continuous failures with other nations. People would understand the real picture if they looked at the statistics, numbers, and what's being targeted and not.
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Dalit
Elite Member
Unless both sides come out praising each other after the second round of negotiations as if nothing happened. As if a deal was reached. Don't be surprised if such a thing happened.
I am surprised though at Modi's China visit. This will sting hard in the US. The Americans are not going to appreciate this one bit. It is obviously an Indian signal to the US. Damage has been done. That is for sure.
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FarhanSiddiqui
Registered Member
In little over six months President Trump went from being a Deva (god) to a Asura (devil) in India. India was involved in war profiteering by reselling cheap Russian oil at high prices in Europe. Selling military parts to Russia used against Ukraine. India thinks it can be part of QUAD at the same time being part to BRICS and SCO. Running huge trade surplus and Indians scamming Americans online now everything coming back to bite them.
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side-winder
Moderator
Well obviously things have to stop somewhere. Trump is a nutjob -- maybe just a couple of appeasing tweets from Modi and nomination for peace prize would get the job done
